In China, falling prices for gasoline and diesel fuel

7

В Китае падают цены на бензин и дизельное топливо

Domestic wholesale prices of gasoline and diesel fuel in China in recent decline, the weakening of the major global commodity and soft markets, and they tend to lose their positions, because the excess of oil is growing in much of Asia.

June 18, the price of gasoline national standard of 92-RON was 5 700-5 950 yuan / ton (us $ 827-863. US $ / tonne) on the South, East and North of China and in Shandong province, a decrease of 400-600 yuan / ton, or 6,45% -9,23. % from may 31, the data of JLC show. Meanwhile, prices of diesel fuel in these regions has fallen to 5 800-6 000 yuan / ton, losing 200-350 yuan / 3,28% -5,56%. Gasoline prices fell below prices of diesel fuel, which almost has not been in recent years.

The price of gasoline and diesel fuel was tracking the mitigation of world oil, which suffered from fears of demand in the face of escalating trade wars. They were also weakened by excess supply, when the demand grew slowly.

This year, gasoline prices have fallen more than diesel fuel because the gasoline market are increasing amid slowing demand growth and production growth. According to the National Bureau of statistics (NBS), in January-April 2019 the apparent gasoline consumption in China amounted to 42.59 million Tonnes, which is 3.6% more than in the same period in 2018. Growth decelerated by three percentage points year on year, indicating slower growth of demand because of falling car sales and the negative impact of alternative energy. Car sales in the country are in a downward trend in 2018, while sales of electric vehicles are growing rapidly.

Gasoline production in the country in January-may amounted to 59.19 million Tonnes, an increase of 4.0% compared to the corresponding period in 2018, according to the NBS. Production of diesel fuel, by contrast, declined by 7.6% to 67,74 million tons.

It is expected that supplies of gasoline will rise in the second half of 2019, because Hengli Petrochemical and Zhejiang Petrochemical start production of gasoline and diesel fuel at the new refinery, both of which will have a relatively high ratio of gasoline.

Competition in the processing sector is becoming increasingly fierce, and the retail sales are reduced because gas stations offer large discounts to increase sales. Gas stations owned by PetroChina and Sinopec, launched a new price war in the provinces of Shandong, Henan, Hebei, Jiangsu, Zhejiang and Guangdong in March 2019, offering a discount 1-2-2 yuan per liter of gasoline and about 1 yuan per liter of diesel and petrol private. Station follow the example of market sources.

The market remains heavily bearish, and China probably will again reduce fuel prices next week. As of June 18, the fifth working day cycle in this price ceilings for retail gasoline and diesel fuel in China, JLC selects to indicate that fluctuations in world prices for crude oil fell by 4.86% compared to the previous price cycle to 58,61 USD. US per barrel, which indicates that According to JLC, with a corresponding reduction in the price of gasoline and diesel fuel is about 210 yuan / ton.

LEAVE A REPLY

Please enter your comment!
Please enter your name here